Let’s talk about the most common blunders in working with suppliers.
#1
Not tracking sales speed and stock availability
Always count the average number of units sold per day to find out how long you will have products in stock. E.g. if 50 units are sold per day, and there are 500 in stock, then according to approximate estimates of reserves, you will not run out of stock for nearly 10 days. Thus you have time to arrange the supply of goods.
How to manage product inventory?
1. Estimate how long the manufacturer will work on your order from the very first days of talks up to delivery.
2. Remember that holidays and weekends affect the delivery schedule.
3. Think about whether the express delivery will be justified in economic terms or not.
#2
A Pay-Per-Click ad campaign with no stock
If you see that you are running out of the products in stock, and the delivery of a new order may be late, then you can suspend the pay-per-click ad campaign to slow down the sales rate. This will help you save time and replenish stocks as well.
#3
A wrong approach to Chinese suppliers
While working with Chinese suppliers do not rush to order goods at the price indicated in the price list. Bargaining will significantly reduce the price.
Mark the goods of your suppliers and specify the date of the delivery. Why? To control the quality of samples and compare them with samples of other suppliers.
#4
Keeping the price at the same level
You can raise the price of your goods if you are going to face a stockout.
But what should you do to avoid it?
Just order more goods than you expect to sell in the coming month. Remember that the purchase of a larger wholesale lot has a positive effect on the price per unit.
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